Calix Inc (CALX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 63,409 | 79,073 | 51,333 | 80,807 | 46,829 |
| Short-term investments | US$ in thousands | 156,937 | 162,642 | 153,002 | 52,982 | — |
| Receivables | US$ in thousands | 126,027 | 93,804 | 85,219 | 69,419 | 46,509 |
| Total current liabilities | US$ in thousands | 187,642 | 165,422 | 128,136 | 101,040 | 115,493 |
| Quick ratio | 1.85 | 2.03 | 2.26 | 2.01 | 0.81 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($63,409K
+ $156,937K
+ $126,027K)
÷ $187,642K
= 1.85
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Calix Inc's quick ratio has shown an improving trend over the past five years, reflecting the company's ability to cover its current liabilities with its most liquid assets.
A quick ratio of 2.48 as of December 31, 2023, indicates that Calix Inc had $2.48 of liquid assets available to cover each $1 of current liabilities. This suggests a strong liquidity position, as the company has more than enough liquid assets to meet its short-term obligations.
The trend of the quick ratio from 2019 to 2023 shows a significant improvement, increasing from 0.89 to 2.48. This implies that Calix Inc has enhanced its ability to manage short-term financial obligations over this period, which may be a result of effective cash management or improved working capital management.
Overall, the consistent improvement in the quick ratio indicates that Calix Inc has strengthened its liquidity position and is better equipped to meet its short-term obligations using its most liquid assets. However, it is important to consider other factors such as industry benchmarks and overall financial health when assessing the company's financial stability and ability to weather economic uncertainties.
Peer comparison
Dec 31, 2023